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Taiwan stocks at nearly 4-mth high on banks, Chimei
Reuters - 1 hour 11 minutes ago
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* Banking shares rally amid buyout hopes by Chinese investors
* Chimei Innolux soars as Q2 net tops expectations
* UMC rises ahead of July sales figures
* Foreign investors net buyers so far this month
TAIPEI, Aug 9 - Taiwan stocks rose 0.89 percent to a nearly four-month closing high on Monday, led by gains in banking shares amid hopes Chinese investors would acquire Taiwanese lenders as trade ties across the strait ease.
Adding to the rally, Chimei Innolux <3481.TW> shot up 6.3 percent as its quarterly earnings were more than double what the market expected. [ID:nTPV001833]
The main TAIEX share index <.TWII> ended up 71.19 points at 8,034.49, a closing level not seen since late April, with investors ignoring weaker-than-expected U.S. July payroll data.
Financial shares <.TFNI> rose 2.6 percent, paced by gains in Carlyle Group [CYL.UL]-backed Ta Chong Bank <2847.TW>, which rose by its 7 percent maximum limit.
"The China story would be a boost to Taiwan's banking shares in the short- and long-term," said Alex Huang, an assistant vice president of Mega International Securities.
Taiwan and China signed an economic cooperation framework agreement in June, slashing tariffs on the island's exports and boding well for banks on both sides to invest in each other. [ID:nECFA]
Chimei Innolux, Taiwan's top LCD panel maker, extended gains to close 6.3 percent higher on volume of 73.5 million shares, 3.27 times the daily average traded over the past 30 days.
United Microelectronics Corp <2303.TW>, the world's No.2 contract chip maker, rose 0.7 percent ahead of the release of its July sales figures later on Monday.
Taiwan Semiconductor Manufacturing Co Ltd <2330.TW>, the bigger rival of UMC, slipped 0.33 percent. Its board was set to discuss a $2 billion expansion in 12-inch wafer and solar cell production on Tuesday, a local newspaper said.
Smartphone maker HTC Corp <2498.TW> inched down 0.5 percent, erasing gains at the opening bell.
HTC said on Friday that its July sales more than doubled from a year earlier [ID:nTPV001827].
Foreign investors were net buyers of shares worth T$1 billion on Friday, expanding their net purchases to T$26.2 billion in August. [ID:nTOE65305E]
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